Hello, need a clarification on the above rule. In the example above, is it the combined income of Phil and Mary that is used to calculate the phase out of $25000 allowance? In other words, is the limit of $150,000 when Phil and Mary do a "Married filing jointly" return? What happens if they do a joint return, but only one of them "own" the rental property? Another follow up question about carrying over disallowed rental loss to next year. Does Turbo Tax keep track of our losses from year to year and automatically applies it while filing tax returns for next year, or are we responsible for entering it manually when we are filing tax returns for next year? Thank you.
